Investing in Africa : France must leverage Francophonie and its enterprises

By Dounia Ben Mohamed, in Paris

On April 23, the Novotel Paris Tour Eiffel hosted the 4th edition of the Invest in Africa Forum, with 1800 registered participants. Co-organized by the French Council of Investors in Africa (CIAN) and L’Opinion, the event aimed to assess the new geopolitical landscape and economic prospects of the continent, as well as to explore the most promising sectors – infrastructure, energy, tourism, agro-industry – and key cross-cutting themes – training, recruitment, strengthening sustainability and corporate social responsibility requirements – through various round tables, interviews, testimonials, and country workshops.

The number of French subsidiaries in Africa has doubled, and the stock of direct investments has tripled between 2010 and 2020

The result was clear: entrepreneurs, public officials, and institutional leaders asserted unequivocally that the time is ripe for investment in Africa. « I would like to share two convictions, » said Etienne Giros, President of CIAN, at the outset of this day of exchanges. « Firstly, Africa is doing well, not everyone believes it, but I do. Leave this day with the certainty that Africa is the future of our planet. Secondly, companies must continue to invest, especially French companies, in Africa. » He also encouraged his peers to forge partnerships with African enterprises.

 » The number of French subsidiaries in Africa has doubled, and the stock of direct investments has tripled between 2010 and 2020, » asserted Franck Riester, Minister Delegate to the Minister for Europe and Foreign Affairs, in charge of Foreign Trade and Attractiveness, speaking via video.

A momentum to be continued, particularly by leveraging the Francophonie. An idea not new, but one that has yet to bear fruit. However, as Geoffroy Roux de Bézieux, President of the Alliance of Francophone Employers, explained during a dedicated panel, the « original sin » of the Francophonie is that unlike the Commonwealth, which was originally aimed at economic interests, the Francophonie was created by a poet, Senghor, on a cultural basis.

The underlying trend is that African demographics will drive the global economy

 » The underlying trend is that African demographics will drive the global economy, » he noted.

That being said, « there is a strong demand to create ties, business ties. In order to thrive together as our slogan says, » he stressed, pointing out that « the number of French speakers will increase, thanks to African demographics. » An element to be considered beyond the geopolitical context. « Yes, there are difficulties, but the underlying trend is that African demographics will drive the global economy. In this context, entrepreneurs have a role to play. Without denying political tensions, economic trade and exchanges continue to thrive. » Taking the long period of political tension between France and Morocco as an example, « meanwhile, investments continued. While politicians bicker, entrepreneurs continue to exchange. So, yes, geopolitics is one of the elements an entrepreneur must consider, which is not unique to France in Africa, but nonetheless, one should not be discouraged and consider Franco-economic ties as another way to create connections. »

it is outside this « Francophone » zone, that France economically thrives in Africa

Meanwhile, it is outside this « Francophone » zone that France economically thrives in Africa. Economic exchanges between France and Nigeria have doubled in ten years, making Nigeria France’s largest trading partner in sub-Saharan Africa. With over 10,000 employees, mainly in the oil and gas sector, French companies are investing heavily. However, despite an investment stock of $10 billion and bilateral agreements, French exports remain modest, reaching only 550 million euros over the past twelve months. Challenges persist, including language, insecurity, and ongoing economic reforms. However, Nigeria remains a strategic market for France, and recent agreements in agriculture, energy, and technological innovation attest to the desire to strengthen bilateral investments.

Similarly, in Kenya and increasingly in Uganda, even in Rwanda where relations are strained, France, through its enterprises, is bolstering its presence. Particularly in highly strategic sectors where « Made in France » is in demand. In technology, renewable energies, and distribution, among others.

A « French success » illustrated by the United Mining Supply (UMS) group, a consortium of 30,000 people now the world’s leading producer and exporter of bauxite, elevating Guinea from 8th to 1st place globally. « Guinea will become a major player in the aluminum sector, and we are pleased to be pioneers. Inevitably, Guinea, and more broadly Africa, will develop. And I believe that this ambivalence between France and Africa can be overcome by business, » observes Fadi Wazni, CEO of the group. « But we must also question the reasons for this ambivalence. We must be clear-headed. We must listen, understand, and respect, and exchanges will be fruitful. Things must be done in a balanced manner. »